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D196 Principles of Financial and Managerial Accounting || All Correct.
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Entire CVP Formula (Income Statement) correct answers Sales Revenue - variable cost- fixed cost= profit (net income) Contribution Margin Formula correct answers Sales Revenue (price) -variable cost = contribution margin Break-Even Point in Units formula correct answers total fixed cost / cont...

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  • 26. august 2024
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D196 Principles of Financial and Managerial Accounting ||
All Correct.
Entire CVP Formula (Income Statement) correct answers Sales Revenue - variable cost- fixed
cost= profit (net income)

Contribution Margin Formula correct answers Sales Revenue (price) -variable cost =
contribution margin

Break-Even Point in Units formula correct answers total fixed cost / contribution margin per unit
= break even in units

Break-Even Point in Sales ($) Formula correct answers total fixed cost / contribution margin
ratio = Break even in units

contribution margin ratio formula correct answers contribution margin / sales (or price) =
contribution margin ratio

Variable cost ratio formula correct answers variable cost / sales (or price) =variable cost ratio

The three functions of an accounting system are? correct answers Analysis, Bookkeeping, and
Evaluation

The US organization that monitors the financial accounting disclosures of companies (both U.S.
and foreign) whose stocks trade on U.S. stock exchanges? correct answers SEC

What shows the financial position of an organization's assets, liabilities, and equity at a specific
date in time? correct answers Balance Sheet

The US organization that sets accounting standards for publicly listed companies is? correct
answers FASB

what is the third step in the financial accounting cycle? correct answers Summarize the Effects of
Transactions

What is the first step in the financial accounting cycle? correct answers Analyze Transactions

What is the fourth step in the financial accounting cycle? correct answers Prepare Reports

What shows the amount of cash inflows and outflows for an organization's operating, investing,
and financing activities? correct answers Statement of Cash Flows

What is the language of business? correct answers Accounting

,What shows the profitability of an organization by comparing revenues and expenses for a period
of time? correct answers Income Statement

what is the second step in the financial accounting cycle? correct answers Record the Effects of
Transactions

Utilities expense is classified as correct answers Expense

Notes payable is classified as correct answers Liability

Cash is classified as correct answers Asset

Prepaid expense is classified as correct answers Asset

Service Revenue is classified as correct answers Revenue

Taxes Payable is classified as correct answers Liability

Patents are classified as correct answers Asset

Accounts Payable is classified as correct answers Liability

Inventory is classified as correct answers Asset

Retained Earnings is classified as correct answers Equity

Accounts receivable is classified as correct answers Asset

Salaries Expense is classified as correct answers Expense

Mortage payable is classified as correct answers Liability

Maintenance Expense is classified as correct answers Expense

Fee income is classified as correct answers Revenue

Unearned revenue is classified as correct answers Liability

capital stock is classified as correct answers Equity

buildings are classified as correct answers Asset

Sales are classified as correct answers Revenue

Retained earnings are classified as correct answers Equity

, differential costs correct answers future costs that change as a result of a decision; also called
incremental or relevant costs

break-even point correct answers the amount of sales at which total costs of the number of units
sold equal total revenues; the point at which there is no profit or loss

net income correct answers an overall measure of the performance of a company that is equal to
revenues minus expenses for the period

Form 10-K correct answers a form required by the SEC for businesses to report a comprehensive
summary of financial performance, including the three primary financial statements

Dividends correct answers a sum of money distributed to the owners (stockholders) of a
corporation

Segments correct answers parts of an organization requiring separate reports for evaluation by
management

Raw Materials Inventory correct answers inventory of raw materials that have not yet begun the
production process

Profit Center correct answers An organizational unit in which a manager has control over and is
held accountable for both cost and revenue performance

Long-term assets correct answers Assets that are illiquid and that are needed to operate a
business over an extended period of time

Segment correct answers a subsection of a company that is distinct from the whole of the
company based on its operational activities, customers, or geographic location

comparative financial statements correct answers Financial statements that include information
for both the current year and preceding year(s) that are prepared for users to identify any
significant changes in particular items

Horizontal analysis correct answers a method of financial statement analysis that compares a
firm's results from year to year

Long-term liabilities correct answers liabilities that are not expected to be satisfied within a year

Activity-based costing (ABC) correct answers a method of attributing overhead costs to products
based on measurable factors that relate to activities that create overhead costs

International Accounting Standards Board (IASB) correct answers a committee formed to
develop international accounting standards

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